Judge: Caesars reorganization not a given
By Jacqueline Palank, Wall Street Journal
CHICAGO—Continued sparring over an investigation into dealings between Caesars Entertainment Corp. and its bankrupt operating unit could torpedo the unit’s restructuring, a bankruptcy judge suggested Wednesday.
Judge A. Benjamin Goldgar of the U.S. Bankruptcy Court in Chicago on Wednesday warned Caesars, its bankrupt unit and others fighting over which details of the investigation have to be made public. If the fight isn’t resolved, “then this case is going to take rather a different turn from the one that I imagine the debtor and its parent and its affiliates would like to see,” he said.
Rather than allowing the unit’s current management to remain in charge, Judge Goldgar listed a number of other paths the Caesar unit’s chapter 11 case could take.
Other outlets, including the NY Post, reported that the investigation concluded Caesars was guilty of fraud. If those reports are accurate, Caesars could not only be forced from Chap. 11 to 7(liguidation), but it could also jeopardize many of its executives’ gaming licenses.